You must know the thumb rule of choosing a bitcoin, that is you can’t choose a bitcoin randomly. This is possibly the worst step one would take which would make him lose all his bitcoins and all profits all at once. Also, another bad idea is to choose a bitcoin just because your friend has used that and he has given you back some nice feedback.
Before you set into the profession, you must know little more about trading of bitcoins and then get into it. Not by any word of mouth of some friends or relatives or any other investor. It is your money; you should know all of it concerns you only. While you choose the bitcoin wallet you must keep certain parameters in mind, the wallet would contain some public keys and private keys too.
Steps to Choose the Perfect Wallet?
Now here we will guide you on how to choose or select the correct wallet for keeping your bitcoins. Here we will guide you on how to select the bitcoin for your trading or extra earning.
Related Terms for Bitcoin Wallet
- Private Wallet is a wallet from where you control your keys and you make sure you own them.
- There is something called backup security feature which includes all the backup keys and pin codes.
- There is also an active community for development as and when required.
- You may know that there are two kinds of wallets, hot and cold wallet.
- You may also have a wallet which does not require a KYC
These are some of the things that you must check before you spend anything on bitcoin. But this is not it, there is much more to it, which we will portray here gradually.
You must look for hardware wallets when you look for a wallet for your bitcoin. As you know there are two kinds of wallets a cold wallet and a hot wallet. There is no internet connection to the wallet which is known as a cold wallet. Hence that is very safe to keep all your information on it.
There are also some software wallets which you can use to keep your bitcoins and store them. There are some criteria which set the parameter of being a good wallet and a bad wallet. There are some other features like desktop wallet and mobile wallet which are also used to store the bitcoins or keep them safe.
Desktop wallets are used to hold bitcoins for a period of 2 months to 3 months. Now the interesting fact is that desktop wallets are hot wallets as soon as it goes online.
Mobile wallets are another type of software wallet, but the great thing about mobile wallets is that most of the mobile wallets do have all the criteria that are required for a wallet. The mobile wallets are more comfortable to use than web wallets and they have all the criteria they must have.
In the case of web wallets, you need to be careful also need to do some basic KYC which is not required for mobile wallets. Hence people prefer mobile wallets more.
One thing must be made clear that there are many kinds of wallet but you do not have to use all kinds of wallets. Remember one thing wallets are the trap they are meant to be scammed. So however costly your wallet, does not depend on them completely.
Keep one more thing in mind, whenever you see a new wallet do not just be too excited to get it, first know it well. You must know how it works what are the advantages and the disadvantages of the wallet then finally jump into it.